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Running Head: COCA COLA COMPANY
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COCA COLA COMPANY
Coca Cola Company
Name
Institutional Affiliations
Long Term Goals and Objectives
The long-term goals of the Coca cola Company is maximizing
their dividends while they maintain a long-term sustainable
business growth and development. They also plan to become a
leading company in the world within the beverage industry. The
company aims to refresh the world and becoming a leading
provider of beverage drinks. It also aims to inspiring moments
of optimisms and happiness as well as creating value and
making a comparison in the place that all the human beings live
in.
The organization plans to conduct their business operations
within a unique and a specified fashion as well as being quite
distinguished from its competitors. The organizational culture
entails all the values and traditions that the company strives to
uphold throughout its production life. The mission of the
company includes; refresh the world in body, mind and spirit,
inspire moments of optimism and happiness, create value and
make a difference everywhere the company engages, through
actions and brands, (Bowers, et.al., 2017). The vision is to
become fully sustainable and achieve long-term growth. Values
upheld by the company include; accountability, commitment,
integrity, unity of purpose, innovation and quality.
This is the department tasked with recruiting, hiring and
staffing of employees. Human resource managers at Coca cola
focus much on hiring highly competent workers. This helps the
company to maintain its position as the leading producer of
beverages in the international market. Human resource ensures
that all employee affairs are addressed effectively to enable
them to concentrate and be more productive. Also, appropriate
compensation plans are formulated to ensure that all employees
feel appreciated and valued for their service, (Noe, et.al, 2017).
The company also has training programs for all its workers
across the world. This is to equip all staff members with the
necessary skills that are specifically needed to achieve the
company goals. Human resource management at the company is
very much effective and this can be proven from their ever-
expanding business and employee volumes.
Competitive advantage means having supremacy over the
competitors in the market. By being the most valued and most
preferred by the consumers, a company is said to have more
competitive advantage. Products of the coca cola company have
been ranked the most demanded beverages all over the world.
The company has gone ahead to franchise and establish
production lines across continents in the world. Great sales and
marketing strategies have ensured that the company reaches all
parts of the world. This extensive market coverage and
consistency in quality production has facilitated the company’s
great market power.
Business Management Strategy
Profits maximization is always one of the main objectives of
any company. Shareholders wealth must be maximized. Profits
realization is a way of assessing the effectiveness of operations.
Coca Cola Company has its profits and cash flows analyzed
annually by the finance and accounting departments. All cash
flow analysis are shared with all investors in the company.
The Coca-Cola Company has two main guidelines used in
evaluation of strategic effectiveness. The two guidelines
include; earnings and earnings growth, and profit margins. Total
earnings are equivalent to sales times the profit margins.
Earnings growth is changes witnessed in earning over time.
Profit margins cover gross profits and gross profits margins.
Gross profit value equals total sales less the value of cost of
sales (Barlow, Serodia, McKee & Stuckler, 2018). The gross
profit margin is equal to the gross income divided by the total
sales.
Branding has been the far most essential strategy used by
the Coca-Cola Company to gain and maintain competitive
advantage. Creation of several brands each targeting a certain
specific group of customers has improved the sales of the
company (Bragg, et.al, 2018). Advertisements on mainstream
media and also on social networks has also been very beneficial
in gaining competitive advantage. Coca-Cola has for many years
used true stories to inspire and influence market behavior. The
company has been able to capture the interests of many
customers through the personal stories shared on adverts, (Deal,
2018). Secrecy especially on the composition and production of
the beverages has been the best strategy for the company since
its inception. The company’s beverages have remained unique
for over a century and thus the customers are able to identify
and relate to the products easily (Krishnaswamy, 2017). This
has been instrumental in maintaining a competitive advantage in
the global market.
The Coca-Cola Company has two main guidelines used in
evaluation of strategic effectiveness. The two guidelines
include; earnings and earnings growth, and profit margins. Total
earnings are equivalent to sales times the profit margins.
Earnings growth is changes witnessed in earning over time
(Barlow, Serodia, McKee & Stuckler, 2018). Profit margins
cover gross profits and gross profits margins. Gross profit value
equals total sales less the value of cost of sales. The gross profit
margin is equal to the gross income divided by the total sales.
Gross profit is very essential in analyzing a company’s
performance. A positive trend in gross profits is an indication
of efficient utilization of company resources in the production
process. Gross profit is also very relevant in calculating the
organization’s gross profit margins. The gross profit margins
indicate level of efficiency in production and distribution
processes. Coca-Cola boasts having higher profit margins than
its competitors in the market. This alone is a key attraction for
investors to the company and thus the company is ever
expanding. Also, Coca-Cola has maintained a positive trend in
its earnings and an ever-increasing growth in earnings
(Meissner & Wulf, 2015). This signifies the company’s great
performance in its activities. Total sales have been on the rise
and thus the total net profits have also been increasing.
For any company to operate effectively, there has to be
enormous investments on physical assets. The coca cola
company has invested heavily on land, buildings, equipment and
machinery. All these are to enable effective production process.
Equipment and machinery are regularly serviced and faulty ones
replaced with new ones (Wheelen, Hunger, Hoffman &
Bamford, 2017). Also, the company disposes off its physical
assets after a useful life of 40 years. New assets are purchased
to enable smooth operations after disposing the old ones.
Conclusion
From the analysis, the company does not make any hasty
decisions. The analysis of the company is done annually. The
annual analysis is utilize in evaluating performance and
determining whether any changes ought to be made especially
concerning the products. The company has captured its value
and sustenance of competitive advantage. This will help it
achieve its set goals and objectives using the above assessment.
References
Barlow, P., Serôdio, P., Ruskin, G., McKee, M., & Stuckler, D.
(2018). Science organizations and Coca-Cola’s ‘war´ with the
public health community: insights from an internal industry
document. J Epidemiol Community Health, 72(9), pp. 761-763.
Bowers, M. R., Hall, J. R., & Srinivasan, M. M. (2017).
Organizational culture and leadership style: for effective crisis
management. Business Horizons, 60(4), pp. 551-563.
Bragg, M. A., Roberto, C. A., Harris, J. L., Brownell, K. D., &
Elbel, B. (2018). Marketing food and beverages to youth
through sports. Journal of Adolescent Health, 62(1), pp. 5-13.
Deal, J. (2018). Brand Communication in a Large Consumer
Goods Company: A Case of The Coca-Cola Company.
Krishnaswamy, S. (2017). Sources of Sustainable competitive
Advantage: A Study & Industry Outlook. St. Theresa Journal of
Humanities and Social Sciences, 3(1), pp. 102-103.
Meissner, P., & Wulf, T. (2015). The development of strategy
scenarios based on prospective hindsight: an approach to
strategic decision making. Journal of Strategy, pp. 203.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M.
(2017). Human resource management: Gaining a competitive
advantage. New York, NY: McGraw-Hill Education.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C.
E. (2017). Strategic management and business policy, pp. 55.
Boston: Pearson.
Running head: STRATEGIC MANAGEMENT 2
STRATEGIC MANAGEMENT 2
STRATEGIC MANAGEMENT
Institution Management
Student Name
Date
REPORT: THE COCA-COLA COMPANY
The Coca-Cola company has been a dominant player in the
beverage industry for over a century. Market dominance can be
attributed to the company’s strategic management plans.
Strategic management involves the continuous planning and
formulation of policies that are relevant to an organization’s
vision, (Wheelen, et.al., 2017). The plans are key to achieving
goals and objectives of the company. A company’s operations
are subject to internal and external factors. Internal factors are
mainly the human resource and managerial activities
undertaken. The company can control its internal environment
to suit its production activities. On the other hand, external
environment entails all the activities that happen outside the
company but can influence its production processes. External
factors are uncontrollable.
INTERNAL ENVIRONMENT
Organizational culture: It entails all the values and traditions
that the company strives to uphold throughout its production
life. The mission of the company includes; refresh the world in
body, mind and spirit, inspire moments of optimism and
happiness, create value and make a difference everywhere the
company engages, through actions and brands, (Bowers, et.al.,
2017). The vision is to become fully sustainable and achieve
long-term growth. Values upheld by the company include;
accountability, commitment, integrity, unity of purpose,
innovation and quality.
Human resource: This is the department tasked with recruiting,
hiring and staffing of employees. Human resource managers at
Coca cola focus much on hiring highly competent workers. This
helps the company to maintain its position as the leading
producer of beverages in the international market. Human
resource ensures that all employee affairs are addressed
effectively to enable them to concentrate and be more
productive. Also, appropriate compensation plans are
formulated to ensure that all employees feel appreciated and
valued for their service, (Noe, et.al., 2017). The company also
has training programs for all its workers across the world. This
is to equip all staff members with the necessary skills that are
specifically needed to achieve the company goals. Human
resource management at the company is very much effective and
this can be proven from their ever-expanding business and
employee volumes.
Company physical assets: For any company to operate
effectively, there has to be enormous investments on physical
assets. The coca cola company has invested heavily on land,
buildings, equipment and machinery. All these are to enable
effective production process. Equipment and machinery are
regularly serviced and faulty ones replaced with new ones.
Also, the company disposes off its physical assets after a useful
life of 40 years. New assets are purchased to enable smooth
operations after disposing the old ones.
Organizational structure: The company has in recent years
shifted its structure to adapt a decentralized system of
organization. The two main divisions of the company are the
Bottling investments and the Corporate department. Bottling
mainly deals with actual production activities like packaging
and distribution. On the other hand, the corporate department
majors in the office management activities, sales and marketing,
policy formulation and revision of goals and objectives.
Profits and cashflows management: Profits maximization is
always one of the main objectives of any company.
Shareholders wealth must be maximized. Profits realization is a
way of assessing the effectiveness of operations. Coca cola
company has its profits and cashflows analyzed annually by the
finance and accounting departments. All cashflow analysis are
shared with all investors in the company.
Decision making: The company does not make any hasty
decisions. Analysis is done annually to evaluate performance
and determine whether any changes should be made especially
regarding the products, (Meissner & Wulf, 2015).
EXTERNAL ENVIRONMENT
Just like any other organization, the coca cola company is
affected by factors beyond its control from time to time. Such
factors may include; political instabilities, unhealthy
competition, climate change, trends and technological changes,
legal restrictions such as market liberalization in different
economies, and media advertisements which influence market
behavior, (Barlow, et.al,.2018) The company is unable to
change occurrences that are outside its jurisdiction. The only
way to prevail is by making necessary adjustments from time to
time to counter the prevailing external environment.
COMPETITIVE ADVANTAGE
Competitive advantage means having supremacy over the
competitors in the market. By being the most valued and most
preferred by the consumers, a company is said to have more
competitive advantage. Products of the coca cola company have
been ranked the most demanded beverages all over the world.
The company has gone ahead to franchise and establish
production lines across continents in the world. Great sales and
marketing strategies have ensured that the company reaches all
parts of the world. This extensive market coverage and
consistency in quality production has facilitated the company’s
great market power.
STRATEGIES USED TO GAIN COMPETITIVE ADVANTAGE
Branding has been the far most essential strategy used by the
Coca-Cola company to gain and maintain competitive
advantage. Creation of several brands each targeting a certain
specific group of customers has improved the sales of the
company, (Bragg, et.al., 2018).
Advertisements on mainstream media and also on social
networks has also been very beneficial in gaining competitive
advantage. Coca-Cola has for many years used true stories to
inspire and influence market behavior. The company has been
able to capture the interests of many customers through the
personal stories shared on adverts, (Deal, 2018).
Secrecy especially on the composition and production of the
beverages has been the best strategy for the company since its
inception. The company’s beverages have remained unique for
over a century and thus the customers are able to identify and
relate to the products easily, (Krishnaswamy, 2017). This has
been instrumental in maintaining a competitive advantage in the
global market.
MEASUREMENT GUIDELINES TO VERIFY STRATEGIC
EFFECTIVENESS
The Coca-Cola company has two main guidelines used in
evaluation of strategic effectiveness. The two guidelines
include; earnings and earnings growth, and profit margins. Total
earnings are equivalent to sales times the profit margins.
Earnings growth is changes witnessed in earning over time.
Profit margins cover gross profits and gross profits margins.
Gross profit value equals total sales less the value of cost of
sales. The gross profit margin is equal to the gross income
divided by the total sales.
EFFECTIVENESS OF THE MEASUREMENT GUIDELINES
Gross profit is very essential in analyzing a company’s
performance. A positive trend in gross profits is an indication
of efficient utilization of company resources in the production
process. Gross profit is also very relevant in calculating the
organization’s gross profit margins. The gross profit margins
indicate level of efficiency in production and distribution
processes. Coca-Cola boasts having higher profit margins than
its competitors in the market. This alone is a key attraction for
investors to the company and thus the company is ever
expanding.
Also, Coca-Cola has maintained a positive trend in its earnings
and an ever-increasing growth in earnings. This signifies the
company’s great performance in its activities. Total sales have
been on the rise and thus the total net profits have also been
increasing.
References
Barlow, P., Serôdio, P., Ruskin, G., McKee, M., & Stuckler, D.
(2018). Science organisations and Coca-Cola’s ‘war’with the
public health community: insights from an internal industry
document. J Epidemiol Community Health, 72(9), 761-763.
Bowers, M. R., Hall, J. R., & Srinivasan, M. M. (2017).
Organizational culture and leadership style: for effective crisis
management. Business Horizons, 60(4), 551-563.
Bragg, M. A., Roberto, C. A., Harris, J. L., Brownell, K. D., &
Elbel, B. (2018). Marketing food and beverages to youth
through sports. Journal of Adolescent Health, 62(1), 5-13.
Deal, J. (2018). Brand Communication in a Large Consumer
Goods Company: A Case of The Coca-Cola Company.
Krishnaswamy, S. (2017). Sources of Sustainable competitive
Advantage: A Study & Industry Outlook. St. Theresa Journal of
Humanities and Social Sciences, 3(1).
Meissner, P., & Wulf, T. (2015). The development of strategy
scenarios based on prospective hindsight: an approach to
strategic decision making. Journal of Strategy and
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M.
(2017). Human resource management: Gaining a competitive
advantage. New York, NY: McGraw-Hill Education.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C.
E. (2017). Strategic management and business policy (p. 55).
Boston: pearson

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1Running Head COCA COLA COMPANY2COCA COLA COMPANY.docx

  • 1. 1 Running Head: COCA COLA COMPANY 2 COCA COLA COMPANY Coca Cola Company Name Institutional Affiliations Long Term Goals and Objectives The long-term goals of the Coca cola Company is maximizing their dividends while they maintain a long-term sustainable business growth and development. They also plan to become a leading company in the world within the beverage industry. The company aims to refresh the world and becoming a leading provider of beverage drinks. It also aims to inspiring moments of optimisms and happiness as well as creating value and making a comparison in the place that all the human beings live in. The organization plans to conduct their business operations within a unique and a specified fashion as well as being quite distinguished from its competitors. The organizational culture entails all the values and traditions that the company strives to
  • 2. uphold throughout its production life. The mission of the company includes; refresh the world in body, mind and spirit, inspire moments of optimism and happiness, create value and make a difference everywhere the company engages, through actions and brands, (Bowers, et.al., 2017). The vision is to become fully sustainable and achieve long-term growth. Values upheld by the company include; accountability, commitment, integrity, unity of purpose, innovation and quality. This is the department tasked with recruiting, hiring and staffing of employees. Human resource managers at Coca cola focus much on hiring highly competent workers. This helps the company to maintain its position as the leading producer of beverages in the international market. Human resource ensures that all employee affairs are addressed effectively to enable them to concentrate and be more productive. Also, appropriate compensation plans are formulated to ensure that all employees feel appreciated and valued for their service, (Noe, et.al, 2017). The company also has training programs for all its workers across the world. This is to equip all staff members with the necessary skills that are specifically needed to achieve the company goals. Human resource management at the company is very much effective and this can be proven from their ever- expanding business and employee volumes. Competitive advantage means having supremacy over the competitors in the market. By being the most valued and most preferred by the consumers, a company is said to have more competitive advantage. Products of the coca cola company have been ranked the most demanded beverages all over the world. The company has gone ahead to franchise and establish production lines across continents in the world. Great sales and marketing strategies have ensured that the company reaches all parts of the world. This extensive market coverage and consistency in quality production has facilitated the company’s great market power. Business Management Strategy Profits maximization is always one of the main objectives of
  • 3. any company. Shareholders wealth must be maximized. Profits realization is a way of assessing the effectiveness of operations. Coca Cola Company has its profits and cash flows analyzed annually by the finance and accounting departments. All cash flow analysis are shared with all investors in the company. The Coca-Cola Company has two main guidelines used in evaluation of strategic effectiveness. The two guidelines include; earnings and earnings growth, and profit margins. Total earnings are equivalent to sales times the profit margins. Earnings growth is changes witnessed in earning over time. Profit margins cover gross profits and gross profits margins. Gross profit value equals total sales less the value of cost of sales (Barlow, Serodia, McKee & Stuckler, 2018). The gross profit margin is equal to the gross income divided by the total sales. Branding has been the far most essential strategy used by the Coca-Cola Company to gain and maintain competitive advantage. Creation of several brands each targeting a certain specific group of customers has improved the sales of the company (Bragg, et.al, 2018). Advertisements on mainstream media and also on social networks has also been very beneficial in gaining competitive advantage. Coca-Cola has for many years used true stories to inspire and influence market behavior. The company has been able to capture the interests of many customers through the personal stories shared on adverts, (Deal, 2018). Secrecy especially on the composition and production of the beverages has been the best strategy for the company since its inception. The company’s beverages have remained unique for over a century and thus the customers are able to identify and relate to the products easily (Krishnaswamy, 2017). This has been instrumental in maintaining a competitive advantage in the global market. The Coca-Cola Company has two main guidelines used in evaluation of strategic effectiveness. The two guidelines include; earnings and earnings growth, and profit margins. Total earnings are equivalent to sales times the profit margins.
  • 4. Earnings growth is changes witnessed in earning over time (Barlow, Serodia, McKee & Stuckler, 2018). Profit margins cover gross profits and gross profits margins. Gross profit value equals total sales less the value of cost of sales. The gross profit margin is equal to the gross income divided by the total sales. Gross profit is very essential in analyzing a company’s performance. A positive trend in gross profits is an indication of efficient utilization of company resources in the production process. Gross profit is also very relevant in calculating the organization’s gross profit margins. The gross profit margins indicate level of efficiency in production and distribution processes. Coca-Cola boasts having higher profit margins than its competitors in the market. This alone is a key attraction for investors to the company and thus the company is ever expanding. Also, Coca-Cola has maintained a positive trend in its earnings and an ever-increasing growth in earnings (Meissner & Wulf, 2015). This signifies the company’s great performance in its activities. Total sales have been on the rise and thus the total net profits have also been increasing. For any company to operate effectively, there has to be enormous investments on physical assets. The coca cola company has invested heavily on land, buildings, equipment and machinery. All these are to enable effective production process. Equipment and machinery are regularly serviced and faulty ones replaced with new ones (Wheelen, Hunger, Hoffman & Bamford, 2017). Also, the company disposes off its physical assets after a useful life of 40 years. New assets are purchased to enable smooth operations after disposing the old ones. Conclusion From the analysis, the company does not make any hasty decisions. The analysis of the company is done annually. The annual analysis is utilize in evaluating performance and determining whether any changes ought to be made especially concerning the products. The company has captured its value and sustenance of competitive advantage. This will help it achieve its set goals and objectives using the above assessment.
  • 5. References Barlow, P., Serôdio, P., Ruskin, G., McKee, M., & Stuckler, D. (2018). Science organizations and Coca-Cola’s ‘war´ with the public health community: insights from an internal industry document. J Epidemiol Community Health, 72(9), pp. 761-763. Bowers, M. R., Hall, J. R., & Srinivasan, M. M. (2017). Organizational culture and leadership style: for effective crisis management. Business Horizons, 60(4), pp. 551-563. Bragg, M. A., Roberto, C. A., Harris, J. L., Brownell, K. D., & Elbel, B. (2018). Marketing food and beverages to youth through sports. Journal of Adolescent Health, 62(1), pp. 5-13. Deal, J. (2018). Brand Communication in a Large Consumer Goods Company: A Case of The Coca-Cola Company. Krishnaswamy, S. (2017). Sources of Sustainable competitive Advantage: A Study & Industry Outlook. St. Theresa Journal of Humanities and Social Sciences, 3(1), pp. 102-103. Meissner, P., & Wulf, T. (2015). The development of strategy scenarios based on prospective hindsight: an approach to strategic decision making. Journal of Strategy, pp. 203. Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy, pp. 55. Boston: Pearson. Running head: STRATEGIC MANAGEMENT 2 STRATEGIC MANAGEMENT 2
  • 6. STRATEGIC MANAGEMENT Institution Management Student Name Date REPORT: THE COCA-COLA COMPANY The Coca-Cola company has been a dominant player in the beverage industry for over a century. Market dominance can be attributed to the company’s strategic management plans. Strategic management involves the continuous planning and formulation of policies that are relevant to an organization’s vision, (Wheelen, et.al., 2017). The plans are key to achieving goals and objectives of the company. A company’s operations are subject to internal and external factors. Internal factors are
  • 7. mainly the human resource and managerial activities undertaken. The company can control its internal environment to suit its production activities. On the other hand, external environment entails all the activities that happen outside the company but can influence its production processes. External factors are uncontrollable. INTERNAL ENVIRONMENT Organizational culture: It entails all the values and traditions that the company strives to uphold throughout its production life. The mission of the company includes; refresh the world in body, mind and spirit, inspire moments of optimism and happiness, create value and make a difference everywhere the company engages, through actions and brands, (Bowers, et.al., 2017). The vision is to become fully sustainable and achieve long-term growth. Values upheld by the company include; accountability, commitment, integrity, unity of purpose, innovation and quality. Human resource: This is the department tasked with recruiting, hiring and staffing of employees. Human resource managers at Coca cola focus much on hiring highly competent workers. This helps the company to maintain its position as the leading producer of beverages in the international market. Human resource ensures that all employee affairs are addressed effectively to enable them to concentrate and be more productive. Also, appropriate compensation plans are formulated to ensure that all employees feel appreciated and valued for their service, (Noe, et.al., 2017). The company also has training programs for all its workers across the world. This is to equip all staff members with the necessary skills that are specifically needed to achieve the company goals. Human resource management at the company is very much effective and this can be proven from their ever-expanding business and employee volumes. Company physical assets: For any company to operate effectively, there has to be enormous investments on physical assets. The coca cola company has invested heavily on land,
  • 8. buildings, equipment and machinery. All these are to enable effective production process. Equipment and machinery are regularly serviced and faulty ones replaced with new ones. Also, the company disposes off its physical assets after a useful life of 40 years. New assets are purchased to enable smooth operations after disposing the old ones. Organizational structure: The company has in recent years shifted its structure to adapt a decentralized system of organization. The two main divisions of the company are the Bottling investments and the Corporate department. Bottling mainly deals with actual production activities like packaging and distribution. On the other hand, the corporate department majors in the office management activities, sales and marketing, policy formulation and revision of goals and objectives. Profits and cashflows management: Profits maximization is always one of the main objectives of any company. Shareholders wealth must be maximized. Profits realization is a way of assessing the effectiveness of operations. Coca cola company has its profits and cashflows analyzed annually by the finance and accounting departments. All cashflow analysis are shared with all investors in the company. Decision making: The company does not make any hasty decisions. Analysis is done annually to evaluate performance and determine whether any changes should be made especially regarding the products, (Meissner & Wulf, 2015). EXTERNAL ENVIRONMENT Just like any other organization, the coca cola company is affected by factors beyond its control from time to time. Such factors may include; political instabilities, unhealthy competition, climate change, trends and technological changes, legal restrictions such as market liberalization in different economies, and media advertisements which influence market behavior, (Barlow, et.al,.2018) The company is unable to change occurrences that are outside its jurisdiction. The only way to prevail is by making necessary adjustments from time to time to counter the prevailing external environment.
  • 9. COMPETITIVE ADVANTAGE Competitive advantage means having supremacy over the competitors in the market. By being the most valued and most preferred by the consumers, a company is said to have more competitive advantage. Products of the coca cola company have been ranked the most demanded beverages all over the world. The company has gone ahead to franchise and establish production lines across continents in the world. Great sales and marketing strategies have ensured that the company reaches all parts of the world. This extensive market coverage and consistency in quality production has facilitated the company’s great market power. STRATEGIES USED TO GAIN COMPETITIVE ADVANTAGE Branding has been the far most essential strategy used by the Coca-Cola company to gain and maintain competitive advantage. Creation of several brands each targeting a certain specific group of customers has improved the sales of the company, (Bragg, et.al., 2018). Advertisements on mainstream media and also on social networks has also been very beneficial in gaining competitive advantage. Coca-Cola has for many years used true stories to inspire and influence market behavior. The company has been able to capture the interests of many customers through the personal stories shared on adverts, (Deal, 2018). Secrecy especially on the composition and production of the beverages has been the best strategy for the company since its inception. The company’s beverages have remained unique for over a century and thus the customers are able to identify and relate to the products easily, (Krishnaswamy, 2017). This has been instrumental in maintaining a competitive advantage in the global market. MEASUREMENT GUIDELINES TO VERIFY STRATEGIC EFFECTIVENESS The Coca-Cola company has two main guidelines used in evaluation of strategic effectiveness. The two guidelines include; earnings and earnings growth, and profit margins. Total
  • 10. earnings are equivalent to sales times the profit margins. Earnings growth is changes witnessed in earning over time. Profit margins cover gross profits and gross profits margins. Gross profit value equals total sales less the value of cost of sales. The gross profit margin is equal to the gross income divided by the total sales. EFFECTIVENESS OF THE MEASUREMENT GUIDELINES Gross profit is very essential in analyzing a company’s performance. A positive trend in gross profits is an indication of efficient utilization of company resources in the production process. Gross profit is also very relevant in calculating the organization’s gross profit margins. The gross profit margins indicate level of efficiency in production and distribution processes. Coca-Cola boasts having higher profit margins than its competitors in the market. This alone is a key attraction for investors to the company and thus the company is ever expanding. Also, Coca-Cola has maintained a positive trend in its earnings and an ever-increasing growth in earnings. This signifies the company’s great performance in its activities. Total sales have been on the rise and thus the total net profits have also been increasing. References Barlow, P., Serôdio, P., Ruskin, G., McKee, M., & Stuckler, D. (2018). Science organisations and Coca-Cola’s ‘war’with the public health community: insights from an internal industry document. J Epidemiol Community Health, 72(9), 761-763. Bowers, M. R., Hall, J. R., & Srinivasan, M. M. (2017).
  • 11. Organizational culture and leadership style: for effective crisis management. Business Horizons, 60(4), 551-563. Bragg, M. A., Roberto, C. A., Harris, J. L., Brownell, K. D., & Elbel, B. (2018). Marketing food and beverages to youth through sports. Journal of Adolescent Health, 62(1), 5-13. Deal, J. (2018). Brand Communication in a Large Consumer Goods Company: A Case of The Coca-Cola Company. Krishnaswamy, S. (2017). Sources of Sustainable competitive Advantage: A Study & Industry Outlook. St. Theresa Journal of Humanities and Social Sciences, 3(1). Meissner, P., & Wulf, T. (2015). The development of strategy scenarios based on prospective hindsight: an approach to strategic decision making. Journal of Strategy and Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy (p. 55). Boston: pearson